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Free Employment Contract Template

Draft a professional employment contract covering compensation, benefits, at-will terms, FLSA classification, restrictive covenants, and termination provisions. Built for US employers and employees.

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EMPLOYMENT CONTRACT
State Of California
EMPLOYER
Pinnacle Solutions Inc.
500 Innovation Drive, Suite 300, San Francisco, CA 94105 Incorporated in Delaware EIN: 84-2957301 (415) 555-0100 | hr@pinnaclesolutions.com
EMPLOYEE
Sarah Kim
1245 Marina Blvd, Apt 4B, San Francisco, CA 94123 SSN: ***-**-7842 (415) 555-0198 | sarah.kim@email.com
Vice President of Engineering | Full-time
Start: April 1, 2026 | 185,000.00 USD/yr | bi-weekly
This Employment Contract (this "Agreement") is entered into as of April 1, 2026 by and between Pinnacle Solutions Inc. ("Employer") and Sarah Kim ("Employee"). The Employer and Employee are collectively referred to as the "Parties" and individually as a "Party." In consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1.
POSITION AND DUTIES
The Employer hereby employs the Employee in the position of Vice President of Engineering in the Engineering department. The Employee shall report to Chief Technology Officer and shall perform all duties and responsibilities customary to this position, as well as any additional duties reasonably assigned by the Employer. The primary work location shall be 500 Innovation Drive, San Francisco, CA.

Primary Duties: Lead and manage the engineering department. Oversee all software development, infrastructure, and technical operations. Define technical strategy and roadmap. Recruit, mentor, and retain top engineering talent. Report directly to the CTO on project milestones and team performance.
2.
COMPENSATION
The Employer shall pay the Employee a base compensation of 185,000.00 USD per annum, payable on a bi-weekly basis, subject to all applicable withholdings and deductions required by law. The Employee is classified as Exempt under the Fair Labor Standards Act (FLSA) and is not eligible for overtime compensation. The Employer reserves the right to adjust compensation from time to time at its sole discretion, provided that such adjustment does not reduce compensation below the amount stated herein without the Employee's written consent. Classification of the Employee as exempt or non-exempt shall be determined under the Fair Labor Standards Act, 29 U.S.C. Sections 201 et seq., and the exemption tests set forth in 29 C.F.R. Part 541 (executive, administrative, professional, outside sales, and computer-employee duties tests). The Employer shall comply with the Equal Pay Act, 29 U.S.C. Section 206(d), and all applicable state wage transparency laws, including California SB 1162 (Cal. Labor Section 432.3), New York Labor Law Section 194-b, Washington SB 5761, and the Colorado Equal Pay for Equal Work Act.
3.
WORK AUTHORIZATION AND TAX WITHHOLDING
On or before the first day of employment, the Employee shall complete USCIS Form I-9 (Employment Eligibility Verification) and present acceptable documents establishing identity and authorization to work in the United States, as required under the Immigration Reform and Control Act, 8 U.S.C. Section 1324a, and 8 C.F.R. Section 274a. The Employee shall also complete IRS Form W-4 (Employee's Withholding Certificate) in accordance with Internal Revenue Code Section 3402. The Employer shall withhold all applicable federal, state, and local income taxes, Social Security (FICA) under IRC Section 3101, and Medicare contributions, and shall report wages on IRS Form W-2 annually.
4.
TERM OF EMPLOYMENT
This Agreement shall commence on April 1, 2026 and shall continue on an at-will basis, meaning either Party may terminate this Agreement at any time, with or without cause or advance notice, subject to the terms and conditions set forth herein.
5.
EQUAL EMPLOYMENT OPPORTUNITY AND PROTECTED LEAVE
The Employer is an equal-opportunity employer and complies with all applicable federal, state, and local anti-discrimination laws, including: Title VII of the Civil Rights Act of 1964, 42 U.S.C. Sections 2000e-2 (race, color, religion, sex, national origin); the Age Discrimination in Employment Act, 29 U.S.C. Sections 621 et seq. (age 40+); the Americans with Disabilities Act, 42 U.S.C. Section 12112 (disability); the Genetic Information Nondiscrimination Act, 42 U.S.C. Sections 2000ff et seq.; the Pregnant Workers Fairness Act, 42 U.S.C. Section 2000gg; and the Uniformed Services Employment and Reemployment Rights Act, 38 U.S.C. Sections 4301 to 4335. The Employee is entitled to protected leave under the Family and Medical Leave Act, 29 U.S.C. Sections 2601 et seq., to the extent eligible. Nothing in this Agreement shall be construed to waive or limit the Employee's rights under Section 7 of the National Labor Relations Act, 29 U.S.C. Section 157, to engage in concerted activity for mutual aid or protection.
6.
BENEFITS AND LEAVE
The Employee shall be eligible to participate in the following benefits, subject to the terms and conditions of each respective plan:

Insurance and Retirement:
• Health insurance coverage (medical) in accordance with the Employer's group health plan, subject to eligibility requirements and waiting periods as specified in the plan documents
• Dental and vision insurance coverage under the Employer's group plan
• 401(k) retirement plan participation with an Employer matching contribution of up to 4% of the Employee's eligible contributions, subject to plan terms and vesting schedule

Paid Leave:
• 25 days of paid time off (PTO) per calendar year, accruing on a pro-rata basis
• 10 paid sick days per calendar year
• 11 paid holidays per calendar year as designated by the Employer

Additional Benefits:
Stock options (10,000 shares, 4-year vesting with 1-year cliff), annual performance bonus up to 20% of base salary, professional development budget, commuter benefits

The Employer reserves the right to modify, amend, or terminate any benefit plan or program at any time, in its sole discretion, subject to applicable law.
7.
NON-COMPETE
During the term of employment and for a period of 2 years following the termination of employment for any reason, the Employee shall not, directly or indirectly, engage in, own, manage, operate, consult for, or be employed by any business that competes with the Employer's business within the following geographic area: State of California and any state where Employer conducts business. This restriction applies to any business, venture, or activity that is substantially similar to or competitive with the products, services, or activities of the Employer. The Employee acknowledges that this covenant is reasonable in scope, duration, and geographic limitation, and is necessary to protect the Employer's legitimate business interests. State-Law Carve-Outs: This covenant shall not apply to the extent prohibited by applicable state law, including California Business and Professions Code Section 16600 (which voids most employee non-competes), Oklahoma 15 O.S. Section 219A, and North Dakota Century Code Section 9-08-06. The Parties further acknowledge the Federal Trade Commission rule at 16 C.F.R. Part 910 restricting non-compete clauses, to the extent in effect. Nothing in this Section limits the Employee's rights under Section 7 of the National Labor Relations Act, 29 U.S.C. Section 157.
8.
NON-SOLICITATION
During the term of employment and for a period of 2 years following the termination of employment for any reason, the Employee shall not, directly or indirectly: (a) solicit, recruit, or encourage any employee, contractor, or consultant of the Employer to leave the Employer's service; or (b) solicit, divert, or take away any client, customer, or business relationship of the Employer with whom the Employee had contact or about whom the Employee obtained confidential information during the course of employment.
9.
CONFIDENTIALITY AND INTELLECTUAL PROPERTY
The Employee acknowledges that during the course of employment, the Employee will have access to and become acquainted with Confidential Information belonging to the Employer. "Confidential Information" includes, but is not limited to, trade secrets, proprietary data, customer lists, business strategies, financial information, technical specifications, software code, marketing plans, and any other information not generally known to the public. The Employee agrees to hold all Confidential Information in strict confidence and not to disclose, publish, or otherwise disseminate any Confidential Information to any third party, except as required in the performance of duties or as authorized in writing by the Employer. This obligation shall survive the termination of this Agreement indefinitely. Trade secrets shall be protected under the Defend Trade Secrets Act of 2016, 18 U.S.C. Section 1836, and applicable state trade secret law.

DTSA Whistleblower Notice (18 U.S.C. Section 1833(b)): Notwithstanding any provision of this Agreement, the Employee shall not be held criminally or civilly liable under any federal or state trade-secret law for the disclosure of a trade secret that: (i) is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. An employee who files a lawsuit for retaliation by the Employer for reporting a suspected violation of law may disclose the trade secret to the employee's attorney and use the trade-secret information in the court proceeding, provided the employee files any document containing the trade secret under seal and does not disclose the trade secret except pursuant to court order.

Intellectual Property Assignment: The Employee agrees that all inventions, discoveries, improvements, works of authorship, designs, formulae, algorithms, software programs, and other intellectual property (collectively, "Work Product") conceived, developed, or created by the Employee, either solely or jointly with others, during the term of employment and within the scope of employment or using the Employer's resources, shall be the sole and exclusive property of the Employer. The Employee hereby assigns to the Employer all right, title, and interest in and to such Work Product, including all patents, copyrights, trademarks, and other intellectual property rights therein, in accordance with 17 U.S.C. Section 204(a) (copyright assignment in writing) and 35 U.S.C. Section 261 (patent assignment in writing).

Prior-Invention and State Carve-Out: This assignment shall not apply to any invention that qualifies fully under California Labor Code Section 2870 (and parallel state statutes, including Delaware 19 Del. C. Section 805, Illinois 765 ILCS 1060/2, Kansas K.S.A. Section 44-130, Minnesota Minn. Stat. Section 181.78, North Carolina N.C. Gen. Stat. Section 66-57.1, Utah Utah Code Section 34-39-3, and Washington RCW 49.44.140), meaning inventions developed entirely on the Employee's own time without using Employer equipment, supplies, facilities, or trade-secret information, that do not relate to the Employer's business or actual or demonstrably anticipated research, and that do not result from any work performed for the Employer.

Work-for-Hire: To the extent permitted by law, all Work Product created by the Employee in the course of employment shall be considered "works made for hire" as defined under the United States Copyright Act, 17 U.S.C. Section 101. To the extent any Work Product does not qualify as a work made for hire, the Employee hereby irrevocably assigns all rights in such Work Product to the Employer pursuant to 17 U.S.C. Section 204(a).
10.
TERMINATION
This employment is at-will. Either Party may terminate this Agreement at any time, with or without cause. Either Party desiring to terminate this Agreement shall provide the other Party with two (2) weeks' written notice prior to the effective date of termination.

Termination for Cause: The Employer may terminate this Agreement immediately without prior notice for "Cause," which shall include but not be limited to: (a) material breach of this Agreement; (b) willful misconduct or gross negligence in the performance of duties; (c) conviction of, or plea of guilty or nolo contendere to, a felony or any crime involving moral turpitude; (d) fraud, dishonesty, or misappropriation of Employer property; (e) violation of Employer policies after written notice and reasonable opportunity to cure; (f) chronic absenteeism or substance abuse affecting job performance.

Additional termination-for-cause conditions: Unauthorized disclosure of trade secrets, material violation of company code of conduct, repeated failure to meet performance objectives after documented performance improvement plan
11.
SEVERANCE
In the event of termination without Cause by the Employer, the Employee shall be entitled to severance compensation as follows: 4 weeks of base salary per year of service, calculated based on the Employee's base compensation at the time of termination. Payment of severance shall be contingent upon the Employee executing a general release of claims in a form acceptable to the Employer. Severance payments shall be made in accordance with the Employer's standard payroll schedule, less all applicable withholdings and deductions.
12.
PROBATIONARY PERIOD
The Employee shall be subject to a probationary period of ninety (90) (90) days commencing on the start date of employment. During this probationary period, the Employer shall evaluate the Employee's performance, suitability, and compatibility with the position and the organization. Either Party may terminate this Agreement during the probationary period with or without cause and without the notice period otherwise required under this Agreement. Upon successful completion of the probationary period, the Employee shall be considered a regular employee subject to the full terms and conditions of this Agreement.
13.
DISPUTE RESOLUTION
Any dispute, controversy, or claim arising out of or relating to this Agreement shall be resolved by binding arbitration administered by the American Arbitration Association (AAA) in accordance with its Employment Arbitration Rules, governed by the Federal Arbitration Act, 9 U.S.C. Sections 1 et seq. The arbitration shall be conducted in California before a single arbitrator. The decision of the arbitrator shall be final and binding upon both Parties and may be entered as a judgment in any court of competent jurisdiction. Each Party shall bear its own costs and attorneys' fees unless the arbitrator determines otherwise. Statutory Arbitration Carve-Out: Notwithstanding the foregoing, pursuant to the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021, 9 U.S.C. Section 402, the Employee may elect, at the Employee's sole option, to bring any claim involving alleged sexual assault or sexual harassment in court rather than in arbitration, and any pre-dispute agreement to arbitrate such claims is unenforceable as to the Employee. Claims for which arbitration is prohibited or limited by federal law (including whistleblower claims protected by SEC Rule 21F-17, 17 C.F.R. Section 240.21F-17) shall not be subject to this clause.
14.
ADDITIONAL PROVISIONS
Employee shall be eligible for a one-time signing bonus of $25,000, payable within 30 days of start date. In the event Employee voluntarily resigns within 12 months, the signing bonus must be repaid in full. Employee agrees to relocate to the San Francisco Bay Area within 60 days of start date, with relocation expenses up to $15,000 covered by Employer.
15.
GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflict of laws principles.
16.
ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, representations, warranties, commitments, offers, contracts, and writings, whether written or oral, relating to the subject matter hereof. No modification, amendment, or waiver of any provision of this Agreement shall be effective unless made in writing and signed by both Parties. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date first written above.
EMPLOYER
Pinnacle Solutions Inc.
Pinnacle Solutions Inc.
Date: ____________________
EMPLOYEE
Sarah Kim
Sarah Kim
Date: ____________________

What Is an Employment Contract?

An employment contract is a formal written agreement between an employer and an employee that defines the terms and conditions of the employment relationship. It establishes the rights and obligations of both parties, covering everything from job responsibilities and compensation to benefits, termination procedures, and post-employment restrictions.

In the United States, most employment is considered at-will, meaning either party can end the relationship at any time. However, a written employment contract provides clarity and legal protection that verbal agreements cannot. It reduces misunderstandings about compensation, benefits, and expectations, and creates a documented record that both parties can reference throughout the employment relationship.

Employment contracts are especially important for executive-level positions, roles involving access to trade secrets or proprietary information, positions with complex compensation structures (stock options, bonuses, commissions), and any role where restrictive covenants such as non-compete or non-solicitation clauses are needed.

What's Covered in This Template

Doxuno's employment contract template includes all essential sections for a comprehensive US employment agreement. Each section can be customized for your specific role, industry, and state requirements.

Employer & Employee Info

Position & Duties

Compensation

Benefits & Leave

Non-Compete Clause

Non-Solicitation

Confidentiality & NDA

At-Will Employment

IP & Work-for-Hire

Severance Terms

Dispute Resolution

Governing Law

How to Create an Employment Contract

Creating a comprehensive employment contract does not need to be complicated. Our template guides you through each section with clear fields and options. Follow these five steps to build a professional agreement tailored to your specific needs.

  1. 1

    Enter Employer and Employee Details

    Provide the employer's legal business name, registered address, state of incorporation, and EIN. Then enter the employee's full legal name, address, phone number, and email. These details form the foundation of the contract and identify the parties to the agreement.

  2. 2

    Define Position and Compensation

    Specify the job title, department, start date, reporting manager, and work location. Set the compensation type (salary or hourly), amount, pay frequency, and FLSA overtime classification (exempt or non-exempt). Include a description of primary duties and responsibilities.

  3. 3

    Configure Benefits and Leave

    Select which benefits to include: health insurance, dental and vision, 401(k) with employer match percentage, and life insurance. Specify the number of PTO days, sick days, and paid holidays per year. Add any additional benefits like stock options or tuition reimbursement.

  4. 4

    Add Restrictive Covenants and Termination Terms

    Choose whether to include non-compete, non-solicitation, confidentiality, intellectual property assignment, and work-for-hire clauses. Set the at-will employment status, notice period, severance terms, probationary period, and termination-for-cause conditions. Select the dispute resolution method and governing state.

  5. 5

    Review, Download, and Sign

    Review the live preview of your employment contract to ensure all terms are accurate and complete. Download the finished document as a PDF. Both parties should carefully review the final agreement and sign it before the employment start date. Keep signed copies for your records.

Legal Considerations for US Employment Contracts

Employment law in the United States involves a complex mix of federal and state regulations. Understanding the key legal concepts behind employment contracts helps you draft an agreement that protects both the employer and the employee while staying compliant with applicable laws.

This template is provided for informational purposes and does not constitute legal advice. Employment law varies by state and specific circumstances. Consult a licensed attorney for advice tailored to your situation.

Reviewed by legal professionals. The content on this page and the template clauses have been reviewed by licensed attorneys in the United States to ensure accuracy and legal soundness for standard employment contract scenarios.

At-Will Employment and Its Limits

Most U.S. states follow the at-will employment doctrine, which means either the employer or the employee can terminate the relationship at any time without cause. However, a written American employment contract can modify at-will terms by requiring notice periods, specifying termination-for-cause conditions, or providing severance packages. Even in at-will states, terminations cannot be based on discriminatory reasons, retaliation, or violations of public policy.

FLSA Classification Matters

The Fair Labor Standards Act (FLSA) requires employers to correctly classify employees as either exempt or non-exempt. Exempt employees are not entitled to overtime pay and typically hold executive, professional, or administrative roles above a minimum salary threshold. Non-exempt employees must receive overtime pay at 1.5 times their regular rate for hours worked over 40 per week. Misclassification can result in significant penalties, back pay, and legal liability.

State-Specific Restrictions on Non-Competes

Non-compete enforceability varies dramatically by U.S. state. California, Oklahoma, North Dakota, and Minnesota largely prohibit non-compete agreements. Other American states enforce them only if they are reasonable in scope, duration, and geographic limitation. The FTC has also proposed federal rules limiting non-compete clauses. Always verify your state's current laws before including a non-compete provision, and consider alternatives like non-solicitation or confidentiality agreements.

Frequently Asked Questions

Build Your Employment Contract Today

Create a professional U.S. employment contract in minutes. Our American template covers compensation, benefits, restrictive covenants, termination terms, and everything else you need for a solid employer-employee agreement.

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